Forget Eggs and Bacon, its Bratwurst and ‘Sour-Kraut’ for breakfast, lunch and dinner!
According to the Governor of the Bank of England, a ‘no deal’ Brexit will manifest a 35% drop in residential values – ‘hogwash’ I say!
Oh dear, the incorrigible ‘remainian’ Mr. Mark ‘Carnage’, who can’t get over himself, is pontificating again about a 35% drop in residential values, were there to be a ‘no deal’ Brexit. What is this man smoking, since we all want a drag!
Stupid me, I thought his mandate was to be apolitical. Only a fool would have taken any notice of his predictions in the hapless ‘Project Fear’ campaign, before the Referendum. He sycophantedly endorsed Osborne and Cameron’s ill founded rhetoric, shared by the IMF, that, were there to be a Brexit outcome, interest rates would dramatically rise, unemployment would go up by 500,000, there would be an emergency budget and as if that’s not enough, the UK would be tipped into recession.
Anyone with a brain in their head, knew at the time, that this was nonsense and all the more laughable in retrospect. We now have full employment, the UK economy is growing faster than many predicted and the budget deficit is dropping further than even the Chancellor anticipated and certainly no recession in sight.
Even Christine Lagarde, of the IMF, had the humility to apologise for her mis-pronouncements, but where is the remorse from Mr. ‘Carnage’?
Lest we forget, he was the architect of a few ‘bloopers’ in his time and may I remind you of some of them?
1. In 2013, when the jobless rate stood at 7.8%, he predicted Interest Rates would rise when they hit 7%. In actual fact the figure dropped to approximately 4%, five years later in 2018 and then interest rates only rose by 0.25%.
2. In 2013, he said that ‘Britain was trapped in the slowest recovery on record’, yet the UK became the fastest growing economy in the G7 in the following year. Derr!
3. During a speech in 2015, he said that interest rates would rise in the first or second quarter of 2016. They rose in the second quarter of 2018.
With all this crass misjudgment, he gets paid £870,000 per annum of precious taxpayer money, plus benefits and the ‘Maybot’ has even extended his tenure by an additional year. Go figure!
The former Governor of the Bank of England, Lord King, seems to be incandescent with rage about his successors poor judgment on Brexit. With the current negotiations being at a critical point and the atmosphere so febrile, surely the last thing we need at this time is more ‘buckets full of steaming scaremongery’?
UK’s growth is the greater good
The truth is that although there is very little likelihood of a ‘No Deal’ Brexit, despite the bellicose voices that we hear bleating from Brussels, were this to be the outcome, yes, the Pound would drop significantly, but if the Bank of England has any sense, interest rates should not be raised to protect the currency, since they should understand that any rise in inflation would certainly be momentary and protecting the UK’s growth is surely, the greater good.
No doubt, the former Chancellor, Mr. Lamont, could give Mr. ‘Carnage’ a sobering lesson about the futility of trying to protect the Pound from currency speculators, when it’s on the slide, from lessons learnt in 1992, when the Pound ignominiously fell out of the ERM, despite the government’s limp attempts to protect it.
In fact, once we are able to source produce from other parts of the world and food prices drop, then inflation may well fall again, after a period of time, assuming of course that the oil price and wage demands remain within certain bounds.
Residential property will remain steady
I have said ad nauseum, that as long as there isn’t a massive stock overhang in any one sector of the Residential Property Market and mortgage interest rates remain reasonably static, values in the lower to middle range of £1-4million, will remain steady, as long as unemployment is at the present level.
The market up to £1million is very sensitive to any interest rate rise and the continuity of the Help-to-Buy scheme. The political machinations of Brexit do not really apply to this sector.
If there is a run on the Pound, then inward investment from foreign nationals would undoubtedly come pouring in and would mop up any over supply, which could keep values stable in the sector above £5-10million and you never know, they could even rise from there.
You have heard it here first
So my ‘feathered friends’, you have heard it here first here, the Brexit debacle will have little, to no effect on residential values and if it does, it could be a positive result!
Take no notice of our present spineless Chancellor Hammond, ignore the CBI/ IMF and put Mr. ‘Carnage’ ‘back into his box’. They are all incorrigible ‘Remainers’ and would like to scare the Nation into having a second Referendum in the vein hope that we stay in the EU. Not only would this be impractical, in respect of the timescale, but what do you think our obdurate friends from the Europe would do, if this were the scenario?
They would give us the worse possible deal in the negotiations, in the hope that the second Referendum results in the UK remaining in Europe and what do you imagine would be offered to us by the motley line up of Barnier/Tusk/Juncker?
They would insist on our joining the Euro and the daft Schengen scheme, which is causing mayhem across Europe and the resurgence of the right wing factions. They would have us ‘trussed up’ as full members of the Single Market and Customs Union and together, this would be the equivalent of ‘Stockholm Syndrome’ on steroids!
The ‘Peoples Vote’
As to the latest edict from the Labour Party Conference, where the members voted for a ‘Peoples Vote’ with ‘remain’ as one of the possible questions… talk about pathological contrarianism.
I feel quite sure that the CEO of BP is relieved to have ‘Hilda from maintenance’ on the board to help them with decision making on their next multi billion pound takeover… you couldn’t make it up could you? One expects Noel Edmunds to suddenly appear from the curtains in Liverpool and say ‘gotcha’.
Lets hope that they become even more extreme, so that the great British populace can see them for what they are at the next election and pray that they never get their thieving hands on the levers of power.
Commentators say that Brexit is a ‘leap in the dark’. I say, what sort of road map and prescribed guaranteed outcome was given ‘on a plate’ to Churchill when he decided to go to war with Hitler? He had 300,000 dispirited troops ‘holed up’ in Dunkirk, who had to fight against three million well trained and equipped German soldiers, whilst our air force had not even been established. What would have happened to us all, had he listened to the ‘lily-livered’ Lord Halifax or the gutless Prime Minister Chamberlain at the time?
Our constant diet today, would be Bratwurst and ‘Sour Kraut’ for breakfast, lunch and dinner (if you will forgive the pun).
Aufwiedersehen meine freunde!